BoI purchased $664m foreign currency in June

The foreign exchange reserves have reached a record $108.7 billion, the Bank of Israel reports.

Israel’s foreign exchange reserves at the end of June 2017 stood at a record $108.706 billion, up $1.339 billion from their level at the end of the previous month, the the Bank of Israel reports. The reserves represent 33.4% of GDP.

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The increase was the result of foreign currency purchases by the Bank of Israel totaling $664 million, of which $140 million was purchased as part of the purchase program intended to offset the effects of natural gas production on the exchange rate. A revaluation increased the reserves by about $712 million and private sector transfers of about $55 million also contributed to the increase. The increase was offset by government transfers to abroad totaling about $92 million.

In the past 12 months, the foreign exchange reserves have risen by more than $12 billion from $96.635 billion to $108.706 billion as the Bank of Israel purchases foreign currency to weaken the shekel and help exporters. Despite these efforts, the shekel has strengthened by 9% against the dollar in 2017.